American Century Correlations
| AABKX Fund | USD 9.86 0.08 0.82% |
The correlation of American Century is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as American Century moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American Century One moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Average diversification
The correlation between American Century One and NYA is 0.14 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding American Century One and NYA in the same portfolio, assuming nothing else is changed.
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The ability to find closely correlated positions to American Century could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace American Century when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back American Century - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling American Century One to buy it.
Moving together with American Mutual Fund
| 0.87 | AMDVX | Mid Cap Value | PairCorr |
| 0.94 | AMEIX | Equity Growth | PairCorr |
| 0.9 | AMGIX | Income Growth | PairCorr |
| 0.63 | CDBCX | Diversified Bond | PairCorr |
| 0.8 | AMKIX | Emerging Markets | PairCorr |
| 0.67 | TWACX | Short Term Government | PairCorr |
| 0.88 | TWADX | Value Fund A | PairCorr |
| 0.88 | TWCCX | Ultra Fund C | PairCorr |
| 0.85 | TWCAX | Select Fund A | PairCorr |
| 0.86 | TWCIX | Select Fund Investor | PairCorr |
| 0.86 | TWCGX | Growth Fund Investor | PairCorr |
| 0.7 | TWARX | Short Term Government | PairCorr |
| 0.75 | TWAVX | Short Term Government | PairCorr |
| 0.87 | AMVYX | Mid Cap Value | PairCorr |
| 0.88 | AMVRX | Mid Cap Value | PairCorr |
| 0.96 | TWBIX | Balanced Fund Investor | PairCorr |
| 0.87 | AMVGX | Mid Cap Value | PairCorr |
| 0.85 | TWEAX | Equity Income | PairCorr |
| 0.85 | TWEIX | Equity Income | PairCorr |
| 0.88 | TWCUX | Ultra Fund Investor | PairCorr |
Related Correlations Analysis
| Click cells to compare fundamentals | Check Volatility | Backtest Portfolio |
Risk-Adjusted Indicators
There is a big difference between American Mutual Fund performing well and American Century Mutual Fund doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze American Century's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| PBRNX | 0.34 | 0.02 | (0.09) | 0.33 | 0.50 | 0.63 | 2.13 | |||
| PBPNX | 0.38 | 0.03 | (0.07) | 0.38 | 0.47 | 0.73 | 2.12 | |||
| PVPNX | 0.45 | 0.05 | (0.04) | 0.54 | 0.53 | 0.92 | 2.45 | |||
| PPQZX | 0.51 | 0.06 | (0.02) | 0.67 | 0.55 | 0.99 | 2.78 | |||
| PVQNX | 0.50 | 0.06 | (0.02) | 0.60 | 0.53 | 0.96 | 2.64 |
Be your own money manager
Our tools can tell you how much better you can do entering a position in American Century without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.Did you try this?
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Already Invested in American Century One?
The danger of trading American Century One is mainly related to its market volatility and Mutual Fund specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of American Century is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than American Century. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile American Century One is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American Century One. Also, note that the market value of any mutual fund could be tightly coupled with the direction of predictive economic indicators such as signals in industry. You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.